State faces a more than $115 million deficit for 2015 fiscal year

The state's comptroller announced that Connecticut faces a final deficit of more than $115 million for the 2015 fiscal year.

While fiscal year 2016 began on Wednesday, comptroller Kevin Lembo said the official deficit number for 2015 will be determined later this year.

Lembo told Gov. Dannel Malloy in a letter that he is in general agreement with the Office of Policy and Management, which estimated the deficit to decrease by $49.2 million over last month's projection.

“These projections will undoubtedly undergo further adjustment as accounting corrections continue to be posted after June 30 and revenue and expenditure accruals are processed,” Lembo said. “Any remaining General Fund deficit for Fiscal Year 2015 will be eliminated through a transfer from the Budget Reserve Fund.”

Lembo said the decrease is due to improving revenue. The corporation tax estimate was increased by $44 million.

“This tax category had been expected to record a decline in revenue from last fiscal year due to expanded tax credits; however, the corporation tax is now expected to show a slight gain over last fiscal year,” Lembo said.

He also reported that the projection for escheated property is also up by $36 million this month. However, the gains were offset by a $35 million decrease to the income tax as a result of lower-than-anticipated June receipts.

In total, Lembo said the general fund revenue is expected to fall $141.7 million short of the original budget plan.

“While some revenue categories have exceeded expectations – such as the corporations tax – overall economic growth has remained relatively stagnant,” Lembo said. “The recovery from the last recession has been slower and more gradual than we need, and unlike any other we’ve experienced.”

Technical Discussion

Monday will be bright and chilly. High temperatures will be in the mid to upper 30s in inland sections and lower 40s along the shore. A cell of high pressure will move overhead, and then to the east of the region today and will be the dominating factor in the weather, thus promising the quieter spell.

Monday will be bright and chilly. High temperatures will be in the mid to upper 30s in inland sections and lower 40s along the shore. A cell of high pressure will move overhead, and then to the east of the region today and will be the dominating factor in the weather, thus promising the quieter spell.

This Sept. 24, 2017, photo provided by Michael Kass shows Yann Arnaud during a Cirque du Soleil performance in Toronto. Arnaud died early Sunday, March 18, 2018, after falling while performing during a show on Saturday in Tampa, Fla. (Michael Kass via AP)

A Cirque du Soleil performer died Saturday night after he fell during a performance in Tampa, Florida.

Nearly two weeks after 16-year-old Amy Yu vanished with 45-year-old Kevin Esterly, the pair was found Saturday in Mexico and the man was arrested, authorities say. (Allentown Police Department)

Nearly two weeks after a 16-year-old Pennsylvania girl vanished with a 45-year-old man, the pair was found Saturday in Mexico and the man was arrested, authorities say. Amy Yu was "unharmed and in good health."

Nearly two weeks after a 16-year-old Pennsylvania girl vanished with a 45-year-old man, the pair was found Saturday in Mexico and the man was arrested, authorities say. Amy Yu was "unharmed and in good health."

Technical Discussion

THE FINAL DAY OF SPRING… Some overnight cloud cover prevented temperatures this morning from going as cold as they could have, if the sky would’ve been clear. Now that they’re eroding, the rest of the day will be mostly sunny. After starting out in the 20s and low 30s, temperatures will peak in the upper 30s and lower 40s this afternoon – well below the average high of 49!

THE FINAL DAY OF SPRING… Some overnight cloud cover prevented temperatures this morning from going as cold as they could have, if the sky would’ve been clear. Now that they’re eroding, the rest of the day will be mostly sunny. After starting out in the 20s and low 30s, temperatures will peak in the upper 30s and lower 40s this afternoon – well below the average high of 49!